CSHJR 28(FIN)-CONST. AM:BUDGET RES.FUND/OIL& GAS TAX                                                                     
                                                                                                                                
CHAIR FRENCH  announced the consideration of  CSHJR 28(FIN).                                                                    
The bill was heard previously.                                                                                                  
                                                                                                                                
4:41:24 PM                                                                                                                    
LINDA  HAY,  Staff  to  Representative  Ralph  Samuels,  co-                                                                    
sponsor of HJR 28, introduced herself.                                                                                          
                                                                                                                                
CHAIR FRENCH  described HJR 28  as an interesting  idea that                                                                    
should advance  to the next  committee. That being  said, he                                                                    
has two reservations - one  philosophical and one practical.                                                                    
Philosophically  he  questions  how rich  government  should                                                                    
grow.  He  recognizes  that this  state  is  different  than                                                                    
others  because  it's  a  resource state  so  HJR  28  isn't                                                                    
reaching into people's pockets to  do this. I don't think we                                                                    
could get away with that, he  said. But because we live in a                                                                    
resource  state and  because most  everyone recognizes  that                                                                    
the resource isn't infinite, we should save some.                                                                               
                                                                                                                                
The  more practical  issue revolves  around what  happens in                                                                    
the  future. I  think that  we  all recognize  that at  some                                                                    
point in the future the  five percent payout won't be enough                                                                    
to  sustain   government,  he   said.  When   that  happens,                                                                    
lawmakers will have the choice  of imposing an income tax or                                                                    
using the  money in the "strongbox."  He said he has  a hard                                                                    
time believing that as a  body the legislature will have the                                                                    
wherewithal to  impose an income  tax if all that  rainy day                                                                    
money is sitting  there. He believes that at  some point the                                                                    
legislature will  undo this and  reach in and get  the money                                                                    
out.                                                                                                                            
                                                                                                                                
4:43:38 PM                                                                                                                    
SENATOR  THERRIAULT commented  that if  this is  set up,  it                                                                    
would take  a constitutional amendment to  undo, so reaching                                                                    
in to get the money out may be easier said than done.                                                                           
                                                                                                                                
CHAIR FRENCH  said he thinks that  procedurally a resolution                                                                    
would go  to the people asking  if they want to  be taxed or                                                                    
if they want to take the money from the strong box.                                                                             
                                                                                                                                
SENATOR McGUIRE said  her hope is that  government growth is                                                                    
controlled.  The  main  point  the  sponsor  made  was  that                                                                    
continued  growth in  the operating  and capital  budgets is                                                                    
unsustainable. I hope we live within our means, she said.                                                                       
                                                                                                                                
CHAIR  FRENCH  said  the   slide  showing  the  relationship                                                                    
between  the  surplus  and   government  spending  was  very                                                                    
persuasive.                                                                                                                     
                                                                                                                                
4:45:11 PM                                                                                                                    
SENATOR HUGGINS  motioned to report CSHJR  28 from committee                                                                    
with   individual   recommendations  and   attached   fiscal                                                                    
note(s).                                                                                                                        
                                                                                                                                
CHAIR  FRENCH   announced  that  without   objection,  CSHJR                                                                    
28(FIN) is moved from the Senate Judiciary Committee.